Yahoo Finance 75%of this Walgreens Boots Alliance, Inc. (NASDAQ:WBA) insider's holdings were sold in the last year
From what we can see, insiders were net sellers in Walgreens Boots Alliance, Inc.'s (NASDAQ:WBA ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Walgreens Boots Alliance
The Last 12 Months Of Insider Transactions At Walgreens Boots Alliance
Over the last year, we can see that the biggest insider sale was by the Independent Director, Nancy Schlichting, for US$661k worth of shares, at about US$39.89 per share. So what is clear is that an insider saw fit to sell at around the current price of US$37.19. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Nancy Schlichting was the only individual insider to sell shares in the last twelve months.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Walgreens Boots Alliance better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders At Walgreens Boots Alliance Have Sold Stock Recently
The last three months saw significant insider selling at Walgreens Boots Alliance. Specifically, Independent Director Nancy Schlichting ditched US$661k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Walgreens Boots Alliance insiders own about US$166m worth of shares (which is 0.5% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Walgreens Boots Alliance Tell Us?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But since Walgreens Boots Alliance is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Walgreens Boots Alliance. Case in point: We've spotted 3 warning signs for Walgreens Boots Alliance you should be aware of, and 1 of these is concerning.
But note: Walgreens Boots Alliance may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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